Step 19 ~ Monitor Business Credit Files

As you continue to build business credit it will be critical to continuously and regularly monitor your business credit files and keep your credit references up-to-date. We discussed in the previous step how the business credit bureaus are unregulated, which means they aren’t required to follow the same rules as the personal credit bureaus. This makes it critical to stay on top of your bills and pay them well before the due date so you greatly reduce the chance to have a late payment show up on your report. Another reason to monitor your credit files is it is common for credit references to get crossed between businesses of similar names or address. If you are keeping track of every business account and something incorrect or erroneous shows up you can immediately take the necessary steps to have it removed. Again, since the business credit bureaus are unregulated they are not required to investigate within any certain period of time, if at all, but the good news is later in this guide we will show you the proper methods for disputing incorrect information.

In the previous step we also discussed securing trade references that report to the credit bureaus. With the limited number of accounts that actually report it will often be necessary to have business credit that doesn’t report just so your small business can access the unsecured financing it needs. These accounts can still be an asset as long as they are documented and the information is readily available when you are completing an application. Most business credit issuers will take these types of accounts into consideration and it could make the difference when making their approval decisions. Please note, there is no substitution for a thick business credit file, but if anything these types of accounts will help get your business a faster start in building business credit.

Before we start the process to build small business credit it is necessary to write down any and all accounts that your business currently has and include the address and phone number for each business credit issuer, account number, date account opened, average account activity and credit limit. We also suggest keeping your business banking and general business information in the same document to have easy access to the information as you go through the process. During our initial consultation with a new client we provide you with templates for easy account record-keeping and tell you exactly what information business credit issuers like to see and in what format.